Starbucks. PESTLE and Porter five force analyses - Assignment Example

Download file to see previous pages It sells both cold and hot drinks, salads, sandwiches, snacks, pastries, coffee beans, and also other items like mugs, tumblers, etc. The revenue generated by the company in the year 2012 is $13.29 billion, and the operating income is $1.99 billion. The total number of employees is 149,000 till 2011. Starbucks was also the first to introduce the system of Starbucks Express. Through this system Starbucks can order online, so that when they visit the store their order would be ready for them and they would not have to wait. Even a Starbucks Card Apps was introduced for the iPhones and Android users to make payments online. This study aims at discussing the market environment of Starbucks through the strategic tools such as PESTLE and Porter five force analyses. An evaluation of the critical success factors would also be helpful in assessing the business environment further. In the next section the strategic analysis would be further done in details by identifying the strengths and weaknesses, resources, core competencies and the value chain of Starbucks. Finally the strategic fitness of Starbucks would ascertain the sustainability of the company.PESTEL is the macro environmental analysis tool, which is used for scrutinizing the political, economical, social, technological, legal and environmental factors. In this study the in-depth PESTLE analysis of UK would assist in understanding the business environment of Starbucks....
The present prime minister of UK is David Cameron, who has taken several initiatives in dealing with the ongoing recession and for diminishing the fiscal deficit of the country. Economical Factors Due to the economic slowdown and a decline of 0.8 percent in the growth rate, the rate of job cuts is also increasing in UK. The rate of unemployment was recorded to be 8.1 percent in 2011, and expectation of an increasing unemployment rate was high. It has been projected that by 2012, the unemployment rate would be 8.3 percent, which is the highest in 16 years. So it can be said that the economic conditions would also affect the customers who visited coffee shops and restaurants because the purchasing power of people has decreased. Social Factors The government of the country has to face many challenges for maintaining the stages of public services on recommendation. Since the budget deficits, slowing economic condition and other economic issues, so the authorities were not in a condition to maintain the level of expenditure on the projects associated with social welfare. (Marketline, 2012a, p. 4). In UK people prefer to have coffee more than tea, so though economic conditions are adverse, but people would not change their preference for coffee, which would also benefit Starbucks. Technological Factors UK has the second largest aerospace after US. The manufacturing sector of the country supports about 276,000 employees. The government of UK has also stated that the level of knowledge in science and innovation has increased in the country by 1.9 percent in the year 2004, and it is expected to rise to 2.5 percent by 2014. Even coffee shops in the country are technologically well equipped. It can be understood by ...Download file to see next pagesRead More